Deductibles

Yes, anything related to the business is deductible.  Books, equipment, paper, ink, toner, pens, pencils, etc., ad nauseum.  YOU HAVE TO KEEP RECEIPTS.  I invoice with every job I return to the private MDs and at the end of the month I take those statements and add them up and submit a MONTHLY BILL as I want to be paid MONTHLY from all private MDs because it makes for less paperwork.  Also, your computer guy's services are deductible.

Also, good news, a percentage of your home's mortgage or rent and a percentage of your electric bill, and ALL of your phone bills, are deductible.  Again, you have to keep receipts for a long time, in case you get audited by the IRS.

As for taxes - guesstimate about 25% - I used to pay them quarterly to the IRS but decided to pay them in April in full.  The good thing about MQ on the side for me is that they DO take out taxes so you'll only be paying taxes on your private accounts.  You will fill out a schedule C for the private side of things come April.

Hope that helps.

• I am considering going from SE to IC, sm - MQer
  • Deductibles - Been IC for 10 years
    • two items - Snow Bunny

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